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Verge (XVG) Cryptocurrency
About this guide: Our Verge guide will tell you everything you need to know to get started. We’ll explain what Verge is, what it does and offer our insights on the project. As always, we do urge caution before making any cryptocurrency investments and encourage you to do your own research.
What Is Verge?
Put simply, Verge is all about keeping users anonymous and protecting their privacy. Yes, the XVG coin is a completely anonymous store and transfer of value (like Bitcoin). But the Verge project also offers other privacy solutions like a privacy focused payment platform, anonymous wallets and a private instant messaging solution.
The XVG Tech
Privacy coins like Verge do what they say on the tin. However, it is wise to have a basic understanding of how Verge works and what makes it anonymous. We’ll go over the main points in a simple and straightforward way.
The Wraith Protocol – Keeping Transaction Records Anonymous
Usually, cryptocurrency transactions are recorded either on a private or public ledger. The Bitcoin public ledger shows every single Bitcoin transaction ever made and can be accessible by anyone. Bitcoin transactions are not as anonymous as you think, there are many ways to match up Bitcoin address to people (think of the times you have sent in your ID to verify account on a cryptocurrency exchange).
The Wraith Protocol makes it possible for a XVG user to decide if the transaction should be recorded on a private or public ledger, whilst still remaining anonymous.
What this means in practice is that users can either choose for their transactions to be either viewable on the blockchain or opt for them to vanish. Even if the transaction is viewable publicly, the Wraith Protocol ensures that it cannot be traced back to anyone.
How XVG Keeps Transactions Private
As a transaction is sent, there are two main ways to identify the participants of the exchange. The first is through the IP address of the send and receiver. The second is through intercepting the transaction data packets being transferred over the internet (this is required for one wallet to be credited and the other debited).
Verge has been able to solve both these problems:
XVG has Tor integration. In a nutshell, Tor is used to obscure the IP addresses of the sender and receiver of the transaction.
Is a data transmission network. XVG has integrated with I2P as it obscures all Verge data being sent over the network.
Stealth Addressing: What is It?
XVG further protects a users privacy by obscuring any audit trail. The way Bitcoin can be tracked, is through looking at the transactions between wallets. Verge solve this issue by the use of Stealth Addressing. This enables a sender to create an unlimited number of one use destination addresses for the recipient, this means no link can be made between the sender and recipient. Only the recipient can gain access to the new address and spend the funds.
- Stealth addresses cannot be linked to the original public address.
- Stealth addresses cannot be linked to each other, as they are used only once.
- Only the individual Verge user knows which payments they have received and processed.
- Only the recipient can gain access and spend funds in a Stealth Address.
VISP: Private Instant Messaging
In addition to the payment platform, Verge also has a private instant messaging system called VISP. Each user on the messaging platform has their public key. A user can only send a message to another user if they have the recipients public key, meaning that it is impossible to receive unwanted messages.
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Each message is signed with the public keys they were sent with. This means that you can check that the person messaging you, is who you think they are. Verge Stealth Address is used in this encrypted chat service, so only the recipient and sender of the messages knows who it is and what is being said.
How Will Verge Be Used?
There is a strong XVG use case for any business where clients might want to remain anonymous. This could include any range of businesses from the adult industry, to lawyers and even private medical services.
Imagine if you were thinking about divorcing your partner and wanted legal advice. The chances are that you wouldn’t want DivorceLawyersLTD showing up on your bank statement. This is where a privacy coin like XVG could be exceptionally useful.
For Libertarians who don’t like the idea of big government watching their every move, XVG would be a way to protect their privacy.
Who Is Accepting Verge?
XVG has already partnered up with around 100 vendors . Verge announced their biggest partnership to date on 17th April 2020, when they announced a partnership with the adult website PornHub. Upon the announcement Pornhub vice-president Corey Price commented on Verge saying “It’s an anonymous additional form of payment” and added “Offering privacy-focused payment options is something we have been looking to do for a while.”
Popular YouTube influencer, Suppoman held a poll on Twitter to ask his followers what they thought about the Pornhub parnership. 62% voted negatively on the announcement.
The announcement also saw the price of Verge plummet.
Image via Coinmarketcap.com
Other commentators are pointing out that the adult industry was the main driving force behind the development and mass adoption of the internet. They argue that such a partnership can do the same for mass adoption of cryptocurrency and that XVG will be at the forefront of that.
The Evolution Of Private Messaging?
Verge already has transaction support for Telegram, Discord and Twitter. Shortly, Verge will also be able to integrate with Steam, Reddit and Slack as well. This transaction support allows anyone on the same social platform to transfer XVG between themselves. Yes, it’s possible to send send Verge privately to friends on Twitter.
This integration could have a large impact on the two billion unbanked people in the world. Many of these people have access to social media and gaining the ability to transact value between each other means that XVG can be used as a substitute to the banking services they have been excluded from.
Verge has been designed to enable equal mining rewards to be distributed to people with different types of mining devices.The idea is to stop those with the flashiest mining equipment acquiring too much Verge. If a single person or company owned 51% of all Verge coins, then they would have control over the network.
Android Wallets: Optimised For Anonymity
XVG has also pioneered two unique Android wallets. The first runs exclusively on TOR and the other runs on i2P. Both wallets have made innovative steps to increasing a users anonymity and have additional security features such as biometric locking. Both wallets enable users to transfer XVG by scanning a simple QR code.
The technology used in these wallets is interesting because transactions are completed by a technique known as Simple Payment Verification, which was outlined in Satoshi Nakamoto’s white paper (the creator of Bitcoin).
XVG supports atomic swaps. But what are they? Put simply, an Atomic swap allows you to swap one cryptocurrency for another, without using a cryptocurrency exchange. It must be noted that in order to swap cryptocurrencies using this method, both cryptos need to be atomic swap compatible.
The atomic swap technology is relatively new and is not widely used. However, it does mean that a XVG user could potentially store and transact the currency and even trade it for other cryptos, without ever sending their ID into an exchange.
You might not be surprised to hear the team building a privacy cryptocurrency want to preserve their anonymity. Practically all team members just have their aliases displayed on the site and none of them show real pictures of themselves. As these guys want to keep things private, you will not be able to checkout the Linkedin profiles of team members.
The Future Of XVG
Many people see privacy coins like Verge as a hedge against government interference in the cryptocurrency space. If these people are right and world governments heavily regulate cryptocurrency, then this could be great news for the value of XVG.
At TotalCrypto, we think that governments (on the whole) will support the innovation happening in the cryptocurrency space. The real question is whether there are a significant number of people out there wanting to keep legitimate transactions private? For XVG to be truly successful, it certainly needs to build significantly more partnerships amongst well known brands and continue to grow its user base.
If XVG can get the partners and get adopted widely, then it really could be one of the biggest cryptocurrencies in existence. We will let the Verge team outline their own roadmap and then it’s on you to decide if it’s exciting:
The Verge ICO
XVG is an entirely community driven project and never actually held an ICO.
Should I Invest In XVG?
It’s completely up to you whether you invest in XVG or not. We can give you our opinions on the project though:
- The cryptocurrency processes transactions in just 5 seconds. This is exceptionally fast compared to cryptos like Bitcoin.
- The project is open source and their development team have an open contact policy. This means that new idea can be shared and worked on easily.
- A privacy coin might be exceptionally useful in the face of unfair government intervention. Examples include the Greek government confiscating funds from citizens bank accounts in 2020 , in a desperate attempt to raise money and pay national debts.
- Anyone who values their privacy can benefit from using XVG.
- When it comes to privacy, many people would say: ‘why worry about it, if you have nothing to hide?’ It still remains to be seen if privacy coins like XVG will be mass adopted.
- Bitcoin’s reputation was tarnished after the Silk Road marketplace was revealed and taken down. Since then, Bitcoin has recovered but there are still many out there who still associate the cryptocurrency with criminal activity. As a privacy coin, Verge is susceptible to this type of negative newsflow.
- As privacy coins can be used for tax evasion and money laundering, it seems likely that if governments take issue with any type of cryptocurrency, it will be privacy coins.
Image via Coinmarketcap.com
How To Buy Verge (XVG)?
There are two main ways of buying Verge and we’ve put together an instruction guide on how to do it! The good news is that we’ve put together this awesome guide showing you how. Just follow it and you will have your XVG in no time.
The Total Crypto Team do see why privacy coins like Verge could be valuable. Actually it doesn’t matter if they are used or not, just having the option to use them has value. We can imagine if XVG was well known by the Greeks in 2020, that many would have been interested in using the crypto.
It still remains to be seen if enough people will want anonymous transactions, leading to mass adoption of XVG. Interestingly, VISP private instant messaging might be adopted faster than the actual cryptocurrency. Currently people are beginning to grow suspicious of centralised platforms like Facebook and how data collected might be used. The Cambridge Analytica scandal is likely to be just the tip of the iceberg and we think it is likely that people will start taking their social media and communications privacy more seriously.
The trend for the last decade has been for users to share as much as possible. Maybe now is the time for that trend to reverse? If this sentiment spreads to transactions, then Verge is well placed to capitalise and grow.
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Below we’ve listed some key resources relevant to Verge (XVG).
? Best Free Wallets
We recommend you use the official Verge wallet.
Verge Cryptocurrency: What is Verge Coin?
Since Bitcoin was created in 2009, more than 1,500 different cryptocurrencies are now available to buy, trade and sell. One of these is Verge coin. However, as you will find out from my guide, Verge is completely different from Bitcoin, as its faster, cheaper and more private!
By the way, did you know that Verge was originally called DogecoinDark before it rebranded? This complete guide will tell you everything you need to know, including how the story began and how it can be used.
I am also going to give you a full explanation as to how to technology works. Some of the terminology is rather complex, however I am going to break it down in real-world, easy-to-understand examples.
By the end of this Verge coin guide, you are going to be an expert! So, what are you waiting for, let’s find out exactly what Verge coin is!
Table of Contents
What is Verge XVG?
Verge coin started its cryptocurrency journey in 2020, going by the name of DogecoinDark. The reason it was created was to create a truly private cryptocurrency. The founder of Verge felt that Bitcoin wasn’t anonymous, so he decided to build a new blockchain where transactions could not be traced.
Interestingly, even to this day nobody knows who created Verge, as the founder still goes by his username “Sunerok”. This is like the Bitcoin creator, who is only known by his pseudonym “Satoshi Nakamoto”!
Just like the Verge coin founder, many people believe that sending and receiving money privately is an important human right. For example, when you go on holiday and use your debit card, your bank knows where you are, how much money you have and where you are spending it!
Some people don’t mind a private company storing lots of information on how they live their lives, but most people think that it’s wrong!
The Verge blockchain is also an open-source project, meaning that anyone can suggest changes and improvements. It then goes to a vote, and if most people like the idea, the changes are made!
Verge coin is also known by its ticker symbol — XVG. In total, there will be a maximum supply of 16.5 billion coins, which is much more than Bitcoin’s 21 million!
I will explain how the technology works in more detail later on, however, the important thing to remember about Verge coin is that nobody knows who sent or received a transaction. Furthermore, the Verge blockchain can process a transaction in just 30 seconds, which is a big improvement on Bitcoin, which normally takes 10 minutes!
Verge coin is also much more scalable than Bitcoin, as it is able to process a maximum of 100 transactions per second, with Bitcoin only managing 7!
Note: You might have heard about “Scaling” or “Scalability” in some of my other reviews. This is really important; each blockchain can only process a maximum amount of transactions per second. As the network reaches this maximum number, transactions become slower and more expensive!
Another important feature of Verge coin is that it has five mining algorithms, which I have listed below.
Although these algorithms probably make no sense to you, let me explain why this is important! Mining is basically a way for people to earn extra coins in return for using their extra computing power.
When they do this, they help verify a transaction, keeping the network decentralized. Without miners, it wouldn’t be possible for a blockchain to operate!
Although people don’t actually see this when they mine, what they are actually doing is solving really complex puzzles. These puzzles (or algorithms) are so difficult that no human could solve them. However, as Bitcoin has become so popular, people need to buy really expensive hardware to be able to solve the puzzle, meaning you can only mine if you have lots of money!
This isn’t fair for people who want to earn coins but can’t afford to buy the equipment. Verge is different, as people can mine using CPU’s, GPU’s or ASIC’s, meaning anyone can do it!
Now that you have an understanding of why Verge coin started and how it compares to Bitcoin, let’s understand what it can be used for.
How can Verge Coin be used?
Much like any other cryptocurrency, Verge coin can be used to send and receive funds between wallets. The ultimate aim is that it will be used as a global payments system. Although this might take a long time, the technology is perfect for this purpose.
Firstly, think about how you would send fund to a family member living in a different country? You can go to your local bank, sign some forms and transfer the funds. However, this is normally really expensive and takes days to arrive.
And what about if the person you are sending the money to lives in a remote village in Africa? There might not be any banks for miles! Another option is using a money transfer company like Western Union, but again this is really expensive!
Instead, if you were to transfer funds using Verge coin, your transaction would reach your family member in just 30 seconds, costing less than a cent. You also wouldn’t need to drive to your local bank/Western Union branch and fill out lots of forms, as you can do it anonymously from your computer!
In the real-world, when you spend fiat currency using notes or coins, you don’t need to give anyone your name and address, nor do you need to show any identification. This is the same idea as Verge, however instead of using paper notes, you spend money virtually.
Note: When I use the term “Fiat Currency”, it basically means real-world money like US Dollars or Euros. Verge (XVG) is not fiat money, it is a cryptocurrency. This means that no central bank can control it!
Another reason that people buy Verge coin is as an investment tool, hoping that in the future its value will keep rising. When people first bought the Verge in 2020 (don’t forget it was called DogecoinDark back then), its value was worth just $0.000005.
It didn’t really grow any higher than $0.00001 over the next two years, but since it changed its name, the price has gone crazy! In late 2020, Verge reached its highest point at $0.29!
If you bought Verge in 2020 and held on to it until late 2020, you would have made a profit of more than 5 Million percent!
Now that you know how Verge coin can be used, it’s time to take a closer look at the technology. I hope you are ready, as things are about to get serious now!
Also, if you want to exchange Verge a good rate, you should try using the Changelly crypto swap platform.
How do transactions work?
Before I get started, it is important to remember that Verge was created because the founder felt that Bitcoin was not truly private. Because of this, it would be a good idea to compare the two different blockchains. Also, the Verge team is working on a new upgrade which will make things even more private, but I will explain that part after.
So, when you send a transaction using the Bitcoin system, you need an internet connection. That’s fairly obvious, right? However, when you connect to the internet you reveal lots of information that other people can access.
Imagine you want to access Facebook to check if you have any likes on the recent photo you uploaded. To do this, your ISP (Internet Service Provider) will send a message to Facebook, who will then have your personal IP address.
If you have WIFI at home, your IP address will always be the same and it can be used to get a rough idea of where you are. This is the same when you send a Bitcoin transaction, as the network can see your personal IP address. That’s why using Bitcoin is not truly private.
This is where the Verge is different. When you access the network, your IP address is not revealed to anyone! To do this, they use two different methods.
The first option is using TOR (The Onion Network) as the middleman between your IP address and the Verge blockchain. Tor is a peer-to-peer network that uses multiple different servers to hide your true location. It does this by constantly changing the IP address that is sent to the Verge network.
The second option is using something called I2P, which is very similar to TOR but even more anonymous. While both outgoing and incoming messages on TOR use the same path, I2P uses individual paths. In a real-world example, this is like listening in to a telephone conversation, but only being able to hear one person!
Now that you know how the Verge technology works at present, I am going to explain what the team is currently building to make the transaction even more private!
How is Verge going to make the transaction even more private?
The next stage for the Verge coin team is to create something called the Wraith Protocol. Again, to understand how it works, I am going to explain what happens when you use Bitcoin.
When you send a transaction with Bitcoin, you send coins from a wallet address to another wallet address. For example, “Address ABC123 sends 1 Bitcoin to address DEF456”. As soon as the transaction is completed, everyone in the world can view it on the public blockchain.
Although you won’t be able to see the real name of the people that sent and received the coins, you can see the details of the transaction. Once you have the Bitcoin address, you can then investigate what other transactions that person has made. You can also check how many Bitcoins in total they have!
This is where the Wraith Protocol will be different. Check out the example below!
- John decides to send Bob 100 Verge (XVG) coins.
- John’s address is V123 and Bob’s address is V456.
- John confirms the transaction and 30 seconds later Bob receives 100 Verge (XVG) coins.
- The only thing that the network will be able to see is that 100 Verge (XVG) coins were sent.
- The transaction will look like this: XXXXX sent 100 Verge (XVG) coins toXXXXX
Once the Wraith Protocol is built, which should be in 2020, it will make a Verge even more anonymous! Now that you know what Verge is working on, I am going to explain whether I think the coin will grow or not.
Potential of Verge?
Trying to understand the potential of Verge is a difficult task. One argument would say that their blockchain is really fast (30 seconds vs Bitcoin’s 10 minutes) and quite scalable (100 transactions per second vs Bitcoin’s 7). Furthermore, the cost to send a transaction is about 0.01 XVG, which is practically free!
If the Wraith Protocol is a success, then the price could continue to grow. Verge is also working on a project called Rootstock. This will allow the Verge blockchain to process smart contracts, something that would be a real achievement. For more information on what a smart contract is, see my guide here.
However, it is also important to remember that the Verge is not the only blockchain to offer privacy. Projects like Monero and Zcash all do the same thing. In fact, Monero’s technology is actually more private than Verge, however, transactions are also more expensive. This is something to consider before you buy any Verge coins!
Ultimately, the cryptocurrency markets are really volatile, meaning that no one can predict the future! Just make sure you never invest any money that you can’t afford to lose.
Is Verge secure?
Like most cryptocurrencies, your coins are extremely safe as long as you store them in a secure Verge wallet. XVG is only compatible with a few wallets, so make sure you choose one that does not have access to your private keys.
You can download the official Verge wallet on to your computer, which is the safest option.
If you want to mix security with convenience, lots of people like to use Electrum. Downloading the Electrum wallet will take up less space on your hard drive and is more user-friendly.
The main thing is that you never give anyone your private keys because if you do they will be able to steal all your Verge coins. It is also a good idea to write your back up phrase down and keep it somewhere safe. This means if you forgot your wallet password, you can regain access.
There was a hack on the Verge Twitter account recently, in which the hacker was trying to get people to send them coins. Never send anyone coins unless you know for sure who you are sending them too! A legitimate project would never contact you asking you to send them cryptocurrency.
How can it be abused?
One of the main concerns about Verge coin is that it can be used by bad people who want to commit crimes anonymously. This was one of the main reasons that Verge changed its name, as DogecoinDark made it sound like it was ideal for the dark web.
Note: The dark web is a term often used to refer to websites that are accessed via Tor browsers and used to do illegal things. A good example of this was the Silk Road, which was the “eBay for criminals”. People could buy drugs, weapons, stolen credit cards and much more, using cryptocurrency to trade.
One possibility for its illegal use is for money laundering. If a criminal puts their money into Verge, it would be almost impossible for law enforcement to trace it!
Verge coin would also be popular for ransomware attacks, which is when criminals send a virus to your computer. The virus will say that your computer is locked until you send money. As the Verge coin is anonymous, it would be very difficult to find out who is responsible for the attack!
I hope that you have enjoyed my guide on Verge coin and that you found it both interesting and educational! Although the technology is quite complicated, I hope I explained everything to you in a simple way. This means that you should now be an expert in Verge cryptocurrency!
So what do you think about the project? Do you think it will one day become a global payment system? When you compare the technology to Bitcoin, it certainly has lots of advantages. It faster, cheaper and much more private.
Although the Verge has lots of competition, it could become really big if its Rootstock protocol becomes a reality. This will mean that Verge can be used for things other than just financial transactions!
I would also love to hear thoughts on whether you think the price of Verge will continue to grow in 2020, or whether you think other privacy blockchains are a better investment. Leave your comments below!
Verge XVG (Cryptocurrency)
Verge is an open-source, decentralized cryptocurrency that claims to offer completely anonymous transactions by obfuscating the location and IP address of the transacting participants using TOR and I2P network layers. Verge trades on leading cryptocurrency exchanges with the symbol XVG.
Verge emerged in 2020 as a rebranded version of Dogecoindark, a fork of Dogecoin that came into existence in the year 2020.
Rebranding and Offering Anonymous Transactions
Verge focuses on anonymity and obfuscates users’ IP addresses which make transactions completely untraceable. IP stands for internet protocol, the unique identity in the form of numbers assigned to every device or computer connecting to the internet. Using an IP address, it is possible to trace the user and the online activities they performed on the connected device.
Since popular public ledgers and common cryptocurrencies like bitcoin often face challenges in protecting participants’ complete anonymity, cryptocurrencies like Verge that offer unique ways to hide users’ identities have led to increased use and popularity of such private ledgers.
Verge ensures anonymity by use of multiple anonymity-centric networks such as The Onion Router (TOR) and Invisible Internet Project (I2P). TOR protects users’ identities by bouncing their communications over a distributed network of relays and tunnels run by volunteers spread across the globe, while I2P encrypts user data and sends it through a volunteer-run anonymous peer-to-peer globally distributed network.
While anyone can view the various transactions occurring on the Verge public ledger, the use of TOR and I2P network layers hide the location as well as IP addresses of the transacting participants. The Core Verge wallets have built-in TOR integration, additionally supported by SSL-encryption, adding an extra level of security.
While there are many other cryptocurrencies, like Monero and Dash, which also claim to offer higher levels of privacy and anonymity, they rely on cryptography techniques and implementation. Though such cryptocurrencies have achieved varying levels of success in securing user anonymity, their implementation has also made their respective public ledgers secure but less transparent. This tradeoff at times makes it difficult to publicly verify transactions, a core requirement of decentralized cryptocurrency. (See also, What Is Monero (XMR) Cryptocurrency?)
Verge tries to tackle this problem technically. It does not rely heavily on cryptography; rather it banks on the existing and tested technology of TOR and I2P network to achieve its goals of user identity protection. Verge’s founders say that an open ledger is mandatory for the participants to verify their transactions, and for other participants to publicly authenticate and verify the overall developments occurring on the blockchain without the need for participant’s identity. Verge’s implementation helps it achieve both.
The anonymity of Verge was quoted as the primary reason for an adult website network to start accepting cryptocurrency payments exclusively in the Verge cryptocurrency in April 2020. As of April 2020, Verge is ranked 23 rd in the list of cryptocurrencies by market cap.
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